The term "network externality" refers to a barrier to entry that exists because:
A) the value of the product to a consumer depends on the number of consumers using the product.
B) a group of firms has divided the market into interconnected shares controlled by each firm.
C) several firms are able to network with each other and control the market.
D) consumers are unable to network, i.e., cooperate, with each other to control market price.
A
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A perfectly competitive firm will not operate where MC = MR but at MC = AC
a. True b. False Indicate whether the statement is true or false
Refer to the below data. In the long run, the number of firms in this monopolistic competitive industry will most likely:
Answer the question on the basis of the following demand and cost data for a specific firm.
A. Decrease
B. Increase
C. Stay the same
D. Cannot be determined from the given data